Canada Jobs Report Misses: Employment Falls 4,700 as Unemployment Hits 6.7%
Canada's October jobs report came in weaker than expected, with employment down 4,700 and unemployment rising to 6.7%, according to investingLive. The miss has added to the case for caution on Bank of Canada policy and pushed USD/CAD higher.
In this article
The Canada jobs report for October came in weaker than expected on both headline measures, according to investingLive, which cited Statistics Canada's Labour Force Survey. Employment fell by 4,700 against a forecast gain of 13,600, while the unemployment rate rose to 6.7% from 6.5%.
Key points
- Employment change was -4,700 against a forecast of +13,600, after a prior decline of 68,000 in September.
- The unemployment rate reached 6.7% versus 6.5% expected, as 33,000 more people looked for work.
- Private-sector employment fell 53,000, its first decline since February, while public-sector employment rose 50,000.
- Average hourly wages rose 2.2% year over year, slightly slower than the 2.3% recorded in September, before seasonal adjustment.
- USD/CAD moved to a new high for the day, according to investingLive's market commentary.
What happened in the Canada jobs report
Statistics Canada reported that employment was little changed in October, with the decline of 4,700 following drops of 68,000 in September and 42,000 in August. The Labour Force Survey also showed the employment rate slipping to 60.5% from 60.6% in September.
The composition of the data was mixed. Full-time employment fell 18.1K after a drop of 35.4K the month before, while part-time employment rose 13.4K compared with a decline of 32.9K in September. Investing commentary highlighted that the headline weakness was concentrated in the private sector rather than in government hiring.
Within the private sector, wholesale and retail trade lost 29,000 jobs, while construction added 16,000 and educational services added 15,000. Educational services had shed 35,000 jobs in September, so its October gain reversed a sizeable prior drop.
Provincial figures showed diverging trends. According to investingLive, Alberta employment fell 24,000 after a gain of 23,000 in September, while British Columbia added 12,000 jobs following a loss of 20,000 the previous month.
Labour market slack also showed up in the age breakdown. Youth unemployment rose to 13.7% from 13.0%, and unemployment among people aged 55 and older increased to 5.5% from 5.3%.
Why it matters for traders
The Labour Force Survey is one of the main monthly gauges of Canada's labour market, and traders use it to judge both slack and wage pressure. A weaker-than-expected headline combined with a rising jobless rate suggests less pressure on the economy from the labour side.
The Bank of Canada raised its policy rate to 2.50% in October. According to investingLive, the private-sector decline and slower wage growth give the central bank a reason to be cautious about another increase. Energy-driven inflation works in the other direction, since the Bank raised rates out of concern that higher energy costs would spread to other prices.
In general terms, a soft jobs print tends to weigh on a currency and on short-term yields, because markets reassess how quickly rates may move. That mechanism would normally point to pressure on the Canadian dollar and upward pressure on USD/CAD, all else being equal.
Market reaction and data
According to investingLive, a stronger US jobs report combined with the weaker Canadian figures pushed USD/CAD to a new high for the day and to its highest level since October 20. The pair also moved above a swing area between 1.4068 and 1.40828, which includes a broken 38.2% retracement level. investingLive named 1.4110 as its next technical target.
The table below shows the ECB daily reference rates for 2026-11-06. These are daily fixes rather than live quotes, so they may differ from prices seen during the session.
| Pair | ECB reference rate (2026-11-06) |
|---|---|
| USD/CAD | 1.4066 |
| EUR/USD | 1.1165 |
| GBP/USD | 1.3385 |
| USD/JPY | 158.33 |
The USD/CAD daily fix of 1.4066 sits just below the swing area that investingLive described, which illustrates how quickly intraday levels can change relative to a daily reference.
What to watch next
- The New Zealand Parliamentary Elections, scheduled for Friday, November 6 at 21:45 UTC, are the next high-impact event on the calendar listed in the data.
- Any signals from the Bank of Canada on how it weighs weaker employment against energy-driven inflation.
- Whether the private-sector decline continues in upcoming Labour Force Survey releases.
- Whether USD/CAD holds above the swing area that investingLive highlighted, and whether the 1.4110 level it flagged comes into play.
Follow every update in our Top 10 Forex News Today, read BoE's Pill rules out a repeat of the 2022 hiking cycle and warns on growth or see all of today's top market news.
FAQ
What did the Canada jobs report show for October?
The report showed employment down 4,700 against an expected gain of 13,600, and an unemployment rate of 6.7% versus 6.5% expected. Private-sector employment fell 53,000, according to investingLive's summary of Statistics Canada data.
Why did USD/CAD rise after the data?
According to investingLive, the weaker Canadian data came alongside a stronger US jobs report, and together they pushed USD/CAD to a new daily high. Weaker Canadian labour data would normally weigh on the Canadian dollar, which supports the pair.
How does the Canada jobs report affect Bank of Canada policy?
The Bank of Canada raised its policy rate to 2.50% in October, and a soft labour market gives it reason to be cautious about another hike. However, energy-driven inflation remains a counterweight that the Bank has to consider.
Risk warning: This article is for information only and is not investment advice. Trading forex, CFDs, stocks and crypto carries a high risk of losing money. Prices move fast – check live quotes before you trade.
